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Residential PropertyMarket Overview
Tax Year 2019
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Houston EconomyKey metrics to healthy Houston housing market: • Home inventory• Home starts• Sales volume• Sales prices
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Home Inventory• According to the Houston Association of Realtors (HAR), the inventory of available homes was 3.7 months in January 2019
• Increased from 3.2 months supply in January 2018 • 3.7 months of inventory is also the national average
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Home Inventory
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Housing Starts
Building Count New Construction Value
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Sales Volume
According to HAR, sales volume for single family residential properties increased 3.8 percent from 2017 to 2018
• 2017: 79,143 units• 2018: 82,144 units
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Sales Prices• Both the average and median sales prices continued to rise• Average sales price increased 2.6% for the full year sales:
• 2017: $291,340• 2018: $298,982
• Median sales price increased 3.3% for the full year sales:• 2017: $229,900• 2018: $237,500
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Hurricane Harvey• Conducted a driving review of almost 240,000 homes to identify those damaged in the storm • September to mid‐November• Identified almost 70,000 damaged homes
• Visited all damaged homes between January and March for tax year 2018
• More than 42,500 homes still damaged under review for tax year 2019
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2019 Outlook and InsightsNatural Disasters:• Impact of new legislation on HCAD• New FEMA rules and building codes affecting the housing market• HCAD will reinspect flood property for next 3‐4 years
Interest Rates:• Increase in interest rates can have a cooling effect on economy and housing market
• Federal reserve raised the interest rates 7 times in the last two years• Fed funds rate currently 2.5%
Tax Policy:• New federal tax policy impact on the housing market• “Salt” provisions may adversely affect the higher end of housing market
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2019 Residential Noticing
• Residential noticing began Friday, March 8th
• Single family homes including townhomes, condos, and mobile homes were noticed
• Some flood related property were noticed with first batch, but most is still under review
• Approximately 932,000 accounts noticed the first weekend• Another 25,000 accounts noticed the second weekend
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2019 Single‐family Increase, Decrease, No Change(as of March 18)
Market Value ParcelsPercent of Parcels
No Change Increase DecreaseUnder 80,000 82,043 28.0% 69.7% 2.2%80,000 ‐ 149,999 233,859 9.5% 87.4% 3.1%150,000 ‐ 249,999 353,496 6.2% 86.9% 6.9%250,000 ‐ 499,999 181,411 10.1% 72.1% 17.8%500,000 ‐ 999,999 43,715 11.4% 72.1% 16.5%1 million and up 20,846 7.0% 77.7% 15.3%Total 915,370 10.1% 81.6% 8.3%
Tax Year 2018 77.3% 17.1% 5.6%
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2019 Single‐family Percent Change(as of March 18)
Market Value
Average Percent of ChangeOverall Percent of
ChangeReappraisal Onlywith New
ConstructionUnder 80,000 17.73% 18.12% 15.64%80,000 ‐ 149,999 15.19% 16.55% 13.35%150,000 ‐ 249,999 10.38% 19.34% 9.91%250,000 ‐ 499,999 7.70% 25.18% 8.12%500,000 ‐ 999,999 7.73% 16.03% 8.18%1 million and up 8.08% 11.77% 9.38%Total 11.56% 19.34% 9.63%